Jack Villnew is 17 years old and is a real race car enthusiast.One day, he attends to Shyster's Used Car lot.He is looking for a car with a lot of "muscle" as he plans to compete in the Windy 500 which offers a purse of $50,000.00 to the winner.Mr. Shyster shows what he describes as his "prized possession" - a 1965 V-8 Ford Mustang, juiced up with a 400 hp dual overhead cam turbo engine.Shyster says that with "400 hp of power, you should have no trouble winning that race".After hearing that the car has a 400 hp engine, Jack offers to purchase the car for $10,000.00.Shyster accepts this amount.Jack says he will be back tomorrow with a cheque.Shyster says that will be perfect as the car would need a minor tune-up in order to get ready for the race.

Question A:Jack Villnew decides the following day that he doesn't want the car.Has a contract been formed?Is he obligated to perform his end of the bargain?

Question B:i)Jack Villnew returns the next day and pays for the car.He competes in the race and he losses - badly.After the race, he discovers the engine is only equipped with 300 hp.Jack returns to Shyster's complaining of this fact.Shyster says he didn't realize the car only had 300 hp and besides it is not his problem as Jack should have inspected the car prior to purchase.Discuss.

ii)It cost Jack $2,000.00 to enter the race.He feels that he had a better than 50% chance of winning this race and the purse of $50,000.00.What remedies or damages might be available to Jack.